Updated from Nov. 8
CEO Rich McGinn and two other ex-employees soon could face civil charges.
According to a Lucent filing late Monday, the
Securities and Exchange Commission
has issued so-called Wells notices to McGinn, former head of Saudi Arabian operations John Heindel, and a former employee whose identity wasn't disclosed. The papers signify the agency's intent to file civil charges and give the recipient a chance to present his or her side of the case.
The SEC's allegations include bribery and violations of the Foreign Corrupt Practices Act. The agency's action came after both the SEC and the Justice Department opened investigations into alleged corruption in Lucent's Saudi Arabia offices from 1997 to 2000.
Lucent hasn't received a Wells notice but said that the investigation continues.
McGinn ran the telecom-equipment giant during the rapid growth of the Internet boom and was dismissed soon after profits collapsed under a sharp decline in product demand. Lucent was fined $25 million by the SEC for inflating pretax profits by $470 million in 2000. The company also settled a shareholder lawsuit for $514 million earlier this year.
McGinn was never implicated in any of the questionable practices.
McGinn was traveling and unavailable for comment Monday. His attorney didn't respond to a request for comment.
Lucent fell 3 cents to $3.62 in early trading Tuesday.